How is The Agritech Industry Positioned in India?
India is traditionally an agrarian economy. Agriculture accounts for ~% of the total employment in India and contributes ~% of the country’s GDP. In FY’2020, the agri products market in India on the basis of volume was valued at ~ Million tones with the Gross Value Added by the Sector amounting to ~ INR Lakh Crore in FY’2020. The market growth is dependent on various factors such as climatic conditions, productivity of the crop, weed management, pest and disease management, which often lead to fluctuation and volatility in the industry. Rice and wheat are the major crops sown in India accounting for ~% and ~% of the cultivated land in India. Crop yield in India however lags behind its peers including US, China and Brazil in most Foodgrains. Low yield results in low incomes for the farmers.
These pain points of farmers resulted in the emergence of agritech startups in India, aiming to solve the inefficiencies along the agribusiness value chain. By the end of 2020, there were over 600 agritech startups in India, operating with different models in different segments. The sector has been witnessing intensive funding from venture capital firms and even international investors. In 2020, the total investment in the sector crossed USD ~ million, despite the ongoing Covid-19 pandemic. On the basis of revenue, the agritech industry was valued at ~ INR Crore in FY’2020, witnessing a growth rate of ~% from FY’2019-FY’2020.
India Agritech Market Segmentations
Input Market Linkage & Farming as a Service (FaaS) Segment
The segment is the second largest contributor to the revenue of the overall agritech industry in India. The adoption of input market linkage solutions is fast growing in the country. Many players such as Agrostar and Bighaat offer missed call based service for farmers ordering inputs & equipments along with cash on delivery service. On the other hand, some players are offering services such as on-demand machinery rental, field leveling, and pesticide spraying as a part of farming as a service.
Supply Chain, Post Harvest Management and Output Market Linkage Segment
The segment witnessed maximum growth amongst all the segments in FY’2020. Players in the segment are involved in collection, processing, storage, logistics and distribution of agri produce from the farmers to the end customers or retailers. Inadequate rural infrastructure including pack houses at farm gates, paved roads, etc and lack of traceability along the supply chain has necessitated the intervention of agritech players in the segment.
Precision Farming, Advisory and Analytics Segment
The segment is currently in a nascent stage in India. Lack of knowledge about scientific farming methods and techniques among famers in India led to the entry of agritech startups offering precision farming solutions and advisory. These players collect farm specific data about soil, weather conditions, humidity, pests etc using IoT sensors or geospatial technology and combine analytical capabilities to provide timely insights to the farmers. Some players are also offering quality assessment hardware and farm management solutions.
Agri Fintech Segment
The segment is currently in nascent stage in India. The segment comprises of agritech startups offering solutions such as credit, insurance, warehouse receipt financing, trade financing, etc. The segment is still in a nascent stage and has witnessed the entry of players majorly in the last 5-6 years. Lack of access to organized credit, collateral and formal documentation is the biggest challenge faced by farmers that are often in need to small ticket sized loans. Agritech players are leveraging technologies such as geo tagging of farm lands and remote crop monitoring to build risk profiles of farmers and ascertain their credit worthiness.
Competition Scenario in India Agritech Market
Input Market Linkage and Farming as a Service Segment
The competition in the segment is concentrated with the top 5 players accounting for ~% of the industry’s revenue. Startups operating in the segment compete on the basis of parameters such as number of farmers catered, geographical presence, typed of inputs, number of brand partnerships, etc. Major players operational in the segment are Agrostar, Dehaat, EM3 Agriservices, Gold Farm, Gramophone, etc.
Supply Chain, Post Harvest Management and Output Market Linkage Segment
The competition in the segment is concentrated with the top 5 players accounting for ~% of the industry’s revenue. Agritech startups operating in the segment compete on the basis of parameters such as number of buyers, partnerships, geographical presence, number of farmers/suppliers, number of fulfillment centers, etc. Major players operational in the segment are Samunnati Agro, Ninjacart, Waycool, Arya Collateral, Dehaat & many more.
Precision Farming, Advisory and Analytics Segment
The competition in the segment is fragmented with the top 5 players accounting for ~% of the industry’s revenue. Agritech startups operating in the segment compete on the basis of factors such as proprietary hardware/technologies, number of customers/farmers, farmer on-boarding process, geographical presence, etc. Major players operational in the segment are Cropin, Intello Labs, Satsure Analytics, FarmERP, Agnext & many more.
Agri Fintech Segment
The competition in the segment is moderately concentrated with the top 3 players accounting for ~% of the industry’s revenue. Agritech startups operating in the segment compete on the basis of parameters such as number of partner banks & NBFCs, interest charged, geographical presence, channel partner network, number of customers, etc. Major players operational in the segment are Samunnati Financial Intermediation Services, Origo Finance, Ergos, Gramcover, Aryadhan & more.
India Agritech Market Future Outlook and Projections
The agritech market in India is expected to reach at a value of INR ~ Crore by FY’2025 registering a CAGR of ~% during the forecast period of FY’2020-FY’2025. The outbreak of Covid-19 pandemic acted as a catalyst and stimulated the adoption of agritech solutions among farmers and other stakeholders. Other factors as growing rural internet penetration, higher mobile connectivity, increased focus on rural financial inclusion, etc are expected to drive the growth of the industry. Many more startups are expected to enter the industry in the coming years to harness the industry’s untapped potential.
India Agritech Market (Basis Revenue):-
India Agritech Market Segmentations
By Nature of Services, FY’2019-FY’2020 (On the basis of Revenue)
Input Market Linkage & Farming as a Service (FaaS)
Supply Chain, Post Harvest Management & Output Market Linkage
Precision Farming, Advisory & Analytics
Agri Fintech
By Region (On the basis of No. of Agritech Startups)
Karnataka
Maharashtra
Delhi NCR
Haryana
Tamil Nadu
Telangana
Gujarat
Others
Agritech Startups Covered:-
Input Market Linkage & Farming as a Service (FaaS)
Agrostar
Dehaat
Gramophone
EM3 Agriservices
Gold Farm
Bighaat
Thanos Technologies
Supply Chain, Post Harvest Management & Output Market Linkage
Samunnati Agro
Ninjacart
Waycool
Arya Collateral
Dehaat
Farmlink
Crofarm
Agrowave
Precision Farming, Advisory & Analytics
Cropin
Satsure Analytics
Intello Labs
FarmERP
AgNext
BharatAgri
Yuktix Technologies
Fasal
Agricx
Agri Fintech
Samunnati Financial Intermediation & Services
Origo Finance
Ergos
Gramcover
Aryadhan Financial Solutions
Farmart
Jai Kisan
Poultry & Dairy Tech
Milk Mantra
Country Delight
Stellapps
Happy Cow Dairy
Eggoz
Mr. Milkman
Mooofarm
Key Target Audience:-
Agritech Companies
Input Manufacturing Companies
Venture Capital Firms
Independent Investors
Industry Associations
Rural Banks & NBFCs
Government and Regulatory Bodies
Time Period Captured in the Report:-
Historical Period: FY’2019-FY’2020
Forecast Period: FY’2021-FY’2025
For more information on the research report, refer to below link:-
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Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
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